Plastic-surgery app MBO aggravates governance scar 23 Nov 2021 Boss Xing Jin wants to buy the 85% he doesn’t own of New York-listed So-Young, which matches users with beauty services. Shares have slumped since its IPO and China may regulate ads. But Xing’s supervoting stock means investors have themselves to blame for any forced face-lift.
Telenor dials up another promising Asian deal 23 Nov 2021 Following its jumbo Malaysian merger, the Norwegian telecom operator plans to combine its Thai unit with a rival owned by conglomerate CP. There’s a 25% premium on offer to sell, but $2 bln of intended synergies from the first transaction suggest sticking around is a better call.
Elliott’s Athenahealth sale wins it future friends 22 Nov 2021 The activist firm has made roughly a fivefold return on the health-tech firm it bought after an acrimonious battle in 2019. While some of that’s down to market timing, Athenahealth’s old shareholders might have shared in the gains had the firm given Elliott more of a hearing.
Capital Calls: Eni spinoff 22 Nov 2021 Concise views on global finance: The $50 bln Italian oil group has a new name for the renewable energy and retail arm it plans to partially list.
Monster fizz and Corona would make icky cocktail 22 Nov 2021 The $47 bln energy drink maker may be in talks to merge with Constellation Brands, which sells beer and wine. Both have reason to try a new tipple, but savings would be scant given differences in distribution. And a more sprawling business may command a valuation discount.
KKR bid is next act in Telecom Italia soap opera 22 Nov 2021 The buyout group wants to take the phone operator private for 10.8 bln euros. Offering less than the pre-pandemic share price looks opportunistic. Yet the 47% premium will tempt all but top investor Vivendi, which is nursing hefty losses. The board should start a conversation.
Reliance-Aramco no-deal is sign of the ESG times 22 Nov 2021 A Saudi plan from 2019 to invest $15 bln into the Indian company’s refining arm is being re-evaluated as Reliance’s green ambitions complicate matters for both sides. The impasse reflects the hectic pace of the energy transition, and the cheap capital available to fund it.
Japanese golf buyout plays like a long par-4 22 Nov 2021 SoftBank-backed Fortress is paying $3.5 bln for Accordia’s collection of courses. The sport’s Covid-19 resurgence probably isn’t sustainable, so a valuation of over 10 times EBITDA adds some hazards. A few solid strategic shots, however, could make the investment green reachable.
UBS foreign chair ticks more boxes than Deutsche’s 21 Nov 2021 The Swiss lender picked Irishman Colm Kelleher to lead its board, while the German bank nominated Dutchman Alex Wynaendts. The former Morgan Stanley banker might bring some of the U.S. firm’s valuation magic to UBS. But M&A-hungry Deutsche could use more political heft in Berlin.
Disney’s empty chair is a succession stumble 19 Nov 2021 There’s still no official replacement for Bob Iger, who’s expected to exit at the end of the year. Other companies, from Mastercard to AT&T, named a new chairperson faster and more transparently. With a new CEO in charge, a switched-on board is all the more important.
Bezos could be $90 bln richer with Amazon breakup 19 Nov 2021 The $1.8 trln giant manages its AWS cloud group separately from e-commerce. On its own, the former may be worth as much as the entire company is now. J&J, GE and Toshiba are heading to splitsville. The world's richest man could become even wealthier by adding Amazon to the list.
Paytm IPO ends Morgan Stanley India winning streak 19 Nov 2021 The fintech firm’s 27% first-day drop contrasts with pops the Wall Street giant oversaw for Nykaa and others. Paytm execs and powerful buyers and sellers like Alibaba, SoftBank, and BlackRock all played a role in the fiasco. But as lead bank Morgan Stanley has most to lose.
Blackstone’s raise makes it time for Crown to fold 19 Nov 2021 The buyout firm is back with a sweetened $6.2 bln bid for the embattled Aussie casino empire. Other suitors have fallen away, making the 26% premium even more appealing. The new management team and shareholders are better off letting Blackstone gamble with its lodging reputation.
Razer’s $4.5 bln buyout plan has a serrated edge 19 Nov 2021 The purveyor of pricey keyboards may swap a Hong Kong listing for one in New York as part of a management-led deal. A video-gaming fanbase gives it meme-stock potential while its Southeast Asian fintech unit might look hotter stateside. But any valuation gains may be subtle.
Biden shoots antitrust blank at oil giants 18 Nov 2021 The U.S. president wants regulators to examine anticompetitive behavior by oil and gas groups. Similar past efforts have fizzled because energy firms mostly take prices in a global market. But affordable gasoline is a political must even if it conflicts with Biden's bigger goals.
Prada’s new look merits fashion league promotion 18 Nov 2021 After years of drift, the $18 bln Italian brand has got a grip on its retail chain, axed discounts and rejuvenated its image. That should help it hit a 4.5 bln euro sales target and double its margins. For investors, the catch-up with snazzier rivals is something worth having.
Chancellor: Investors unprepared for carbon crunch 18 Nov 2021 Markets aren’t effectively factoring in a potential hydrocarbons scarcity. It’s not just that the world is trying to get off fossil fuels. They’re increasingly expensive to extract as supplies reach their peak. It’s another downside risk investors need to consider.
Icahn’s Southwest Gas mixtape has all the hits 19 Nov 2021 The activist is blasting overspending, making a hostile tender offer, criticizing a major deal and pushing for a breakup in his campaign at the $4 bln U.S. utility. They are classic Icahn tactics. But history suggests investors might do best if he gets only some of what he wants.
JD looks sturdier than Alibaba in Beijing’s storm 18 Nov 2021 Quarterly earnings at the Chinese e-commerce giants fell as regulatory and other woes take their toll. But the smaller e-retailer is gaining market share while revenue at Alibaba’s core online shopping unit barely grew. The diverging fortunes will bolster JD’s valuation premium.
Viewsroom: European bank M&A, De-Dutching Shell 18 Nov 2021 Big lenders in the euro zone are doing deals, but not the kind investment bankers dream about. BNP Paribas is in U.S. retreat, BBVA bulks up in Turkey and KBC goes Bulgarian. Liam Proud explains. George Hay explains why the Anglo-Dutch oil major is dropping the Dutch bit.